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The need for balance in strengthening governance

June Sim
June Sim • 7 min read
The need for balance in strengthening governance
We should all strive for is not simply to have more rules or louder voices, but to ensure that governance continues to strengthen in a way that is balanced, credible and fit for purpose / Photo: The Edge Singapore
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In any well-functioning market, scrutiny is not a threat — it is a necessity. The idea of the “loving critic”, recently articulated by National University of Singapore Professor Mak Yuen Teen, reflects an important truth: robust governance frameworks benefit from challenge, debate and diverse perspectives.

Such voices play a valuable role in surfacing issues, sharpening thinking and prompting reflection. At the same time, it is equally important that these discussions are grounded in a full appreciation of the regulatory frameworks and market realities within which companies and directors operate.

In this piece, I take a look at four of his suggestions to improve corporate governance: sponsor independence, directorship limits, watchlists and the role of lawyers on boards.

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